The board of the New York State Deferred Compensation Plan has renewed its relationship with Nationwide as the provider of its 457(b) plan for an additional seven years.
The original relationship began in 2003, and the new contract begins April 1, 2016.
The 457(b) plan is similar to private-sector 401(k) and 403(b) plans, used by state and local governments for their employees. Contributions to a 457(b) plan grow tax-free until retirement or termination of employment. Albany-based NYSDCP is available to all employees of the State of New York, and more than 1,400 local governments in the state choose to offer it to their employees.
During the 12 years that the plan has been provided by Nationwide, its assets have more than tripled, growing from $5.5 billion to $18.4 billion, and the number of plan participants has increased from 145,000 to 210,000. Today, the participant average account balance of $87,600 is nearly 50 percent more than the industry average.
Among the services Nationwide provides under the terms of the contract is personalized retirement support from almost 50 Nationwide employees who live in the state. Its Troy, NY-based call center provides a help line that employees can call for education and assistance. The call center fields an average of 20,000 calls monthly and is open six days a week.
Nationwide is the largest provider of public-sector retirement plans in the U.S. Its retirement plans business serves more than 2.1 million retirement plan participants in nearly 39,000 plans.
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